Corruption in Japan and its recent changes are discussed by applying some standard economic methods and by
utilising cross-country comparisons. After giving an overview of corruption in Japan, the effects of corruption on
allocation, investment and growth are discussed. It is then asked whether the character of corruption in Japan has
changed in recent years and to what effect. Finally, some policy options are discussed. It is concluded that the usually
negative effects of corruption have been mellowed in Japan´s history, because "one stop" corruption offered business
at least a predictable framework to reckon with. It is questionable whether recent changes (electoral reform, bashing of
bureaucrats, published scandals, etc.) really improve the situation: the move away from "one stop" corruption may
increase unpredictability, and the decline of long-term - so-called generalized exchange - relationships may imply that
behavioural patterns involving corruption will not be limited to the networks of specific policy arenas (like electoral
politics) any more, but spread into other areas as well